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£1,000 to spend? Here are 2 UK shares I’d buy today

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Finding the right stocks to buy can be challenging. There are thousands of UK shares to choose from, and a whole host of strategies to follow. For my portfolio, I look for shares that have good potential for growth over the long term.

Here are two UK shares I would invest £1,000 in that I think could grow from here.

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Games Workshop

Games Workshop (LSE: GAW) is a company that I have held for a number of years now. I’ve topped up my shares as the price has risen too as I think the company keeps improving.

It is a FTSE 250 company that has grown to be worth over £3bn. The company was founded in the 1970s as a producer of wooden boards for traditional games such as backgammon. The company then began importing the table-top game Dungeons and Dragons, but finally started creating its own fantasy worlds and associated games.

Its biggest revenue generator today is selling collectible miniatures and paints to its growing fanbase. Hobbyists spend time painting their miniatures, then battling against other players on a tabletop. Games Workshop has spent decades developing its IP (intellectual property), now commonly known as its Warhammer 40,000 and Age of Sigmar worlds.

Forecasts for revenue growth are a touch underwhelming for this year, at 8.3%. Profits are set to grow by 5.5%, which is also a bit low for my liking. I do think these forecasts could be beaten though.

There’s always the risk with GAW that its fanbase turns to cheaper alternatives as it’s not the most affordable of hobbies. There’s also a risk of supply chain disruption and increased freight costs that company did warn over in September. But for me, I’d invest £1,000 in the shares today.

Frontier Developments

Frontier Developments (LSE: FDEV) also operates in the gaming sector, only here the company develops video games for consoles and PCs. FDEV is another company with a long history, having been founded back in the 1990s by the current CEO David Braben.

It’s spent decades developing its own IP, and Elite is its most famous and longest gaming franchise. The company has also developed a number of tycoon games that allows players to build and simulate theme parks and zoos.

In addition to its own IP, Frontier acquires licensing rights to develop other games, including for large film franchises and sports organisations. The most recent release was Jurassic World Evolution 2, and a Formula One management game is set for release in 2022.

Forecasts are impressive this year. Revenue is set to grow 55%, and earnings by 39%. However, financial performance can be cyclical depending on big game releases. The pandemic was difficult for the company as it disrupted the development of its games. It is a risk to consider going forward, but I think the prospects for the company are bright. I would invest £1,000 in the shares today.

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Dan Appleby owns shares of Games Workshop and Frontier Developments. The Motley Fool UK has recommended Frontier Developments and Games Workshop. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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